Best crypto insights delivered straight to your inbox.
- The SEC has ended its three-year investigation into Stacks chain creator Hiro Systems.
- Hiro raised $70 million through token sales between 2017 and 2019 to develop the Stacks, triggering a call from the SEC.
The SEC has finally ended its three years long investigation into the blockchain developer Hiro Systems. Hiro was previously known as Blockstack and it raised $70 million from token sales between 2017 and 2019. That got the SEC’s attention.
Hiro Systems developed the Stacks chain with its token STX, in 2018. The Stacks project started in 2017, intending to bring programmability and dApps to Bitcoin.
Back then, the founder Muneeb Ali said he wanted to use Bitcoin’s security and network to support smart contracts and decentralized applications (dApps).
In 2019, Stacks had the first-ever SEC-qualified initial coin offering. But then in 2021, Gary Gensler came knocking because he believed the token sales should have been registered as securities offerings under securities laws. In a post on Twitter, Muneeb said:
“For three-plus years, we have provided all requested information and explained how the Stacks network works and Hiro’s role as a developer tooling company. We’re pleased that the SEC dropped the investigation after this time and effort.”
Muneeb added that this is the best outcome a company in the crypto industry could ask for, but still. America can do better. The industry needs a regulatory system that meets builders of innovative open protocols where they are, says Muneeb.
If you're reading this, you’re already ahead. Stay there with our newsletter.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Jai Hamid
Jai Hamid has been covering crypto, stock markets, technology, the global economy, and the geopolitical events that affect markets for the past 6 years. She has worked with blockchain-focused publications including AMB Crypto, Coin Edition, and CryptoTale on market analyses, major companies, regulation, and macroeconomic trends. She has attended London School of Journalism and thrice shared crypto market insights on one of Africa’s top TV networks.
CRASH COURSE
- Which cryptocurrencies can make you money
- How to boost your security with a wallet (and which ones are actually worth using)
- Little-known investment strategies that the pros use
- How to get started investing in crypto (which exchanges to use, the best crypto to buy etc)